The Journal. Red Lobster's New CEO Plots Its Comeback
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Sep 24, 2024 
Damola Adamolekun, the 35-year-old CEO of Red Lobster and former finance and private equity executive, discusses the restaurant's recent emergence from bankruptcy. He reveals his strategies to revitalize the brand, including lessons learned from the failed 'endless shrimp' promotion. Adamolekun highlights the importance of investing in staffing to enhance customer experience and operational efficiency. With a bold vision and ambitious plans, he aims to turn Red Lobster's fortunes around while navigating the challenges ahead.
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Endless Shrimp Fiasco
- Red Lobster's endless shrimp promotion, intended to boost sales, backfired spectacularly.
- The all-you-can-eat deal cost the company $11 million in just three months and led to bankruptcy.
Underlying Issues
- Damola Adamolekun believes Red Lobster's decline wasn't solely due to endless shrimp but a series of poor decisions.
- Years of underinvestment across multiple owners contributed to the company's downfall.
Threefold Impact
- Endless shrimp caused financial losses, operational chaos, and brand damage.
- The cost of the shrimp exceeded the price customers paid, stressing the kitchen and creating a perception of low quality.